New: Settlement Tentative in Google's Direct-to-Consumer antitrust lawsuit Posted -
On Tuesday, Sept. 6, an elusive settlement was reached in the class action lawsuit filed by 37 U.S. states against Alphabet's Google.
Below are the most important details regarding the situation and what this could have for those who sell products that are digital through Google's U.S. Play Store.
What exactly is the Google antitrust suit about?
In Utah v. Google, 37 attorneys general argue that Google uses unconstitutional, anti-competitive, or unjust business practices that restrict the market, increase prices, and limit choices that harm consumers that purchase games and other digital items via Google Play. Google Play store.
Led by Utah Attorney General Sean D. Reyes, the suit focuses on "exclusionary behavior in connection with the Google Play Store for Android," with actions such as shutting down other app distribution channels and mandating the use of Google Billing (with up to 30% commission to Google).
The suit is co-led by AGs from New York, North Carolina, and Tennessee as well as the 37 AGs comprise 21 million customers in the action.
What happened recently during the Google antitrust case?
A settlement was announced however the details are not yet available. The court must accept the settlement, however those who are part of the settlement (including Utah's AG) are asking for the trial on Nov. 6 trial be cancelled.
Google has denied any wrongdoing, but has yet to comment about this development.
There's currently no time frame on when details will be revealed, however as it's a class action lawsuit, the details are expected to be public after the lawsuit is settled.
What could this mean for game and app developers from the US or otherwise?
If the conditions of the agreement include easing the Google's existing Play Store restrictions and the necessity to make use of Google Billing which is a payment method, it could be an enormous victory for game and app developers looking to diversify how they promote their apps making use of cheaper direct-to-consumer methods like .
According to an announcement on Utah Attorney General Sean D. Reyes' website the 30% Google commission "is much higher than the commission that consumers would pay if they had the ability to choose one of Google's competitors instead." The lawsuit says Google didn't keep its word that it would maintain Android "open source" in order that device manufacturers and app developers could create and develop apps without unnecessary constraints.
The full implications until the terms of the settlement are declared.
What is it about Apple?
It is likely that you are familiar with Epic Games' case against Apple regarding similar issues. In the wake of Epic offered Fortnite gamers to pay using its own payment system, giving them discounts, both Apple as well as Google took down Fortnite from their apps stores. Epic later sued Apple and Google in separate cases.
This past April, a 9th Circuit U.S. Court of Appeals has ruled in the Apple case with mixed outcomes. They sided with Apple that their App Store is not in violation of the federal antitrust laws. However, they also backed the ruling of a lower court in favor of Epic in stating that Apple's ban on permitting app developers to send customers to alternative Store payment methods violated California's Unfair Competition Law.
Epic filed a petition with to the U.S. Supreme court to let the injunction take effect and to force Apple to modify the App Store's practices even though Apple has yet to contest the ruling. However, in August the SCOTUS ruled against Epic's petition and suggested that the adjustments may not be implemented until the appeals process is finalized.
Epic isn't part of the Utah case v. Google case, since they're in their own legal case (with Match Group) against Google. However, Epic's Chief Executive Tim Sweeney posted on the social networks on social media that "If Google is ending its payment monopoly, without having to impose a Google Tax on third-party transactions, we'll settle and join with Google in their new age."
What can it do to assist game developers with direct-to-consumer payments as well as subscriptions?
Plus, our services include a platform that offers an JavaScript Store Builder Library to help you get up and running to quickly integrate in your game or app.
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The Utah Attorney General's website hosts other resources related to the issue.